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I wasn't talking about dealers...
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Posted by zeke (more from zeke) on Thu, 17 Jul 2003 07:19:21 Share Post by Email
In Reply to: Agree, parts and maintainence are what keep..., TKC, Thu, 17 Jul 2003 06:21:37
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...but car manufacturers. Your point, about dealers' profit margin on sale of new vehicles, is well taken, though. However, I'd bet the dealers are not the ones who are setting the huge mark-ups on the parts. I'm sure there is some mark-up, but not enough to explain the %600 difference that Garret noted. Also, I think the dealers make a substantial profit, the 'old-fashioned' way - exploitation of labor power. Show me a Saab dealer that doesn't charge under $90/hour in New England - there's very few. Ask what the guys who do all the wrenching get - I'll bet it's less than a quarter of that. I call it 'old-fashioned' because nowadays the fashion is to not make profit from building things, but from pure speculation - finance and real estate spring readily to mind.

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